Construction Legal Made Easy

Karalynn Cromeens
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Construction Legal Made Easy, hosted by licensed attorney Karalynn Cromeens, explores managing contractors, how to build a smarter business and avoid litigation. In this legal driven show, find the tools, detailed insight and confidence to side step common challenges and thrive in the construction industry.

  1. 1d ago

    TRUST YOUR GUT: Bonus Chapter, Stop Letting Subs Risk Your Business

    Your subs can make or break you. In this bonus chapter, Karalynn explains why every subcontractor needs their own written agreement, how to tie sub payments to owner approvals, and how insurance, additional insured status, and master subcontracts protect your reputation and your bottom line. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter! Key Takeaways 1. Every sub needs a written subcontract that sets quality standards, insurance requirements, and owner‑approval‑based payment terms. 2. Make sub payment contingent on owner approval and your receipt of funds so you are not paying for unapproved or defective work. 3. Use subcontracts to clarify that subs and their workers are not your employees, and require them to carry their own workers' comp. 4. Add yourself as additional insured on subs' policies and use a master subcontract to standardize protections across all projects. Timestamped Overview 01:00 Explanation that the book has focused on homeowner contracts so far, but subcontracting is another major risk area where contractors are often exposed. 02:00 Practical reasons for subcontracts: defining the relationship, setting quality standards, confirming insurance, and requiring that subs' work meets plans and specs and is approved before they get paid. 03:00 Emphasis that subs extend your reputation, so you must communicate your standards and methods clearly and treat subs' work as a reflection of your company. 04:00 Payment terms section: your payment to subs should mirror your payment from the owner, and subs should not be paid until the owner approves their work and pays you. 05:00 Common scenario: sub wants payment even when the homeowner is unhappy or the work is not to spec, and how a clear contingent‑payment clause gives you leverage. 06:00 Legal reasons for subcontracts: reducing the risk that subs or their workers can claim to be your employees and sue you or the owner when injuries occur. 07:00 Explanation of workers' comp audits: without subcontracts, auditors may treat everyone you paid as employees and spike your premiums; story of a client facing a large audit bill that was reduced thanks to signed subcontracts. 08:00 Insurance strategy: requiring subs to name you as additional insured so you can file claims directly on their liability policy if their work causes damage. 09:00 Wine‑cellar flooding example where a sub set off sprinklers and caused major damage, and how being additional insured allowed the contractor to file a claim without relying on the sub. 10:00 Introduction to the master subcontract concept: one comprehensive agreement covering standards, insurance, payment terms, and legal protections for all future jobs with that sub. 11:00 Explanation that with a master subcontract, each new job can be covered by a simple work order referencing the existing terms, simplifying paperwork and enforcement. 12:00 Discussion of how a master subcontract helps during worker injuries and insurance audits by clearly proving that subs are independent and must carry their own coverage. 13:00 Reminder that the industry has moved beyond handshake deals; even long‑time subs and friends should work under written agreements because risks and claims have changed. 14:00 Suggestion to include extra protections in master subcontracts, such as preventing homeowners from hiring your subs directly and requiring approval for extra work before it is performed. 15:00 Key takeaways recap: always use written subcontracts, set tight payment and insurance terms, list yourself as additional insured, and use a master subcontract to streamline the process and protect your business and reputation.

    11 min

  2. Jun 22

    TRUST YOUR GUT: Chapter Fifteen, Don't Let Punch Lists Kill Your Profit

    Homeowners love endless punch lists; your bank account does not. Karalynn explains how to structure the punch out process, set expectations in your contract, and communicate so you handle touch‑ups once, close out the job, and actually collect that final payment. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter! Key Takeaways 1. Define a one‑time punch out walkthrough in your contract and tie it directly to final payment. 2. Over‑communicate the process so homeowners know punch list items are normal and not a reason to stall payment. 3. Use change orders if punch list work extends the schedule, so you are not in breach of your own completion date. 4. A written punch out process is powerful evidence if unfinished details show up later in court photos. Timestamped Overview 01:00 Story of the contractor stuck in endless calls over tiny issues while the last 5–10 percent of the contract stays unpaid, and explanation that some homeowners use this to avoid final payment. 02:00 Definition of the punch out process as the final stage of tweaks and touch‑ups, and how homeowners often misunderstand it as a chance to keep you on the hook forever. 03:00 Guidance to explain the full process before the job starts, emphasize that incomplete areas during the job are normal, and focus everyone on the final walkthrough as the time for blue‑taping issues. 04:00 Clear rule: the punch out walkthrough happens once, the homeowner lists everything at that time, you fix those items, and then final payment is due while warranty still covers true later problems. 05:00 Advice to put the punch out process in your contract, encourage homeowners to keep a running list, and explain that this structure protects both sides from endless, unfocused requests. 06:00 Story of Carlos in Oklahoma who thought a project was fine until a quiet owner exploded with complaints, fired him, and still owed $60,000, showing how poor communication can cost you big. 07:00 Lesson from Carlos: homeowners are not experts, they need things explained more than once, and it is your job to manage expectations, not just do good work. 08:00 Discussion of how punch out work can affect the schedule; example of needing an extra ten days and the importance of communicating that and issuing a change order to extend the completion date. 09:00 Explanation that failure to adjust the schedule can technically put you in breach, and that clear communication about extra time and storage or other knock‑on costs helps avoid disputes over consequential damages. 10:00 Discussion of how unfinished punch list items look to a jury: photos of small defects can make you seem sloppy if the jury does not understand you never got a chance to complete punch out. 11:00 Masonry case example where the contractor planned to return for final touches but was fired, and photos of missing mortar in court made it look like an abandoned, low‑quality job. 12:00 Explanation that a written punch out clause lets you show you were scheduled to fix those items, strengthening your defense even if it is not perfect. 13:00 Key takeaways recap: always have a written punch out process, explain it before the contract is signed, emphasize that it happens once, and make final payment due after that list is complete. 14:00 Closing reminder that a clear punch out process prevents wheel‑spinning at the end of jobs, protects you in court, and leaves homeowners satisfied and more likely to recommend you

    12 min

  3. Jun 15

    TRUST YOUR GUT: Chapter Fourteen, Additional Provisions That Protect Your Profit

    Every "never again" moment belongs in your contract. Karalynn shares hard‑learned stories involving dead koi, pets, bad reviews, spray foam, and more, and shows how catch‑all and specific clauses can limit consequential damages and turn painful lessons into protection. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter! Key Takeaways 1. Treat every painful job as a lesson and update your contract so you never learn that lesson twice. 2. Use a broad consequential‑damages disclaimer plus specific carve‑outs (pets, landscaping, visitors, noise, delays) to set expectations. 3. Add provisions for social media photos, mediation before bad reviews, technical products like spray foam, and maintenance responsibilities. 4. Make maintenance and lack of upkeep expressly the homeowner's responsibility so you are not blamed for long‑term neglect. Timestamped Overview 01:00 Story of Wyatt cleaning a koi pond: routine job, careful handling, and then a call days later that all the expensive fish died after the cleaning. 02:00 Explanation that the contract said Wyatt was only cleaning the pond, not guaranteeing fish survival, but the devastated owners wanted $5,000 for the fish on a $3,000 job. 03:00 Wyatt chooses to refund the $3,000 to avoid a long fight and then adds detailed clauses about water chemistry risks and aquatic life to future contracts. 04:00 Principle: every surprise or "I didn't see that coming" is a chance to change your contract; contracts are living documents that should evolve with your business and experience. 05:00 Introduction of example provisions contractors add: social media use clauses giving permission to use project photos while still being willing to remove them later to preserve goodwill. 06:00 Discussion of a mediation‑before‑bad‑review clause requiring clients to attempt mediation before posting scathing online reviews, so you get one fair shot to resolve issues privately. 07:00 Spray foam insulation provision: explanation that foam can be installed perfectly but still cause problems if the house is not set up for it, and why you must disclaim responsibility for existing systems and ventilation. 08:00 Introduction of the "catch‑all" clause that says you are not responsible for consequential damages arising from the scope of work, and why this single line is a powerful shield. 09:00 Everyday examples where the clause applies: cracked driveways from heavy trucks, dusty vents after tile demo, and other natural side effects of construction work that you should not be on the hook to fix. 10:00 List of common specific risks to call out: escaped pets, landscaping damage, visitors walking through active job sites, and vibration‑related damage to decor unless you are negligent. 11:00 Additional examples: internet outages from accidental line damage and schedule delays causing extra rent or financing costs, and why you must disclaim responsibility for these knock‑on costs outside your control. 12:00 Story of Jason's pond project: a beautiful pond and koi, homeowners neglect maintenance for a year, the dog drinks from the stagnant pond, becomes ill, and dies. 13:00 Explanation that the grieving family did not blame Jason, but the situation showed how serious the consequences could have been without maintenance and liability clauses in the contract. 14:00 Jason updates his contracts to state he is not responsible for damage caused by lack of maintenance and increases emphasis on explaining upkeep obligations to clients. 15:00 Wrap‑up key points: adapt and update your contract regularly, clearly allocate maintenance and consequential risks, and use specific and catch‑all provisions to prevent future disputes, then tee‑up the next chapter on punch out and final payment.

    14 min

  4. Jun 8

    Stop Working When They Don't Pay

    Prompt payment laws can be powerful leverage.  Karalynn explains Texas prompt pay timelines, interest penalties, when generals and owners must pay subs and suppliers, and how subs can legally stop work when the GC gets paid but keeps your money. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter! Key Takeaways 1. Prompt payment laws set deadlines for generals, subs, and suppliers to pay after receiving funds. 2. These laws allow contractors to charge interest on late payments even without a contract interest clause. 3. In Texas, GCs have seven days to pay subs after owner payment, invoices for materials must be paid in 35 days, and subs can send a 10-day notice and stop work once they confirm the GC was paid. Timestamped Overview 00:10 Topic setup: prompt payment in general and specifically how it works in Texas. 00:30 Explanation that most states have prompt payment laws requiring GCs to pay subs, and subs to pay their subs and suppliers, within set timelines. 01:00 Overview of interest penalties for late payment, and explanation that normally you need a written contract to charge interest, but prompt payment laws give you that right by statute. 01:30 Introduction to Texas Property Code chapter 28 as the prompt payment statute, and explanation that once the GC gets paid by the owner, they have seven days to pay subs before interest can start. 02:00 Explanation that owners or GCs have 35 days to pay material invoices, and interest begins to accrue on day 36 whether or not you send a demand letter. 02:30 Discussion of the 1.5 percent per month, 18 percent per year interest rate in Texas and how this interest can be added to lien claims when you file. 03:00 Explanation that GCs can withhold up to 150 percent of disputed amounts if they claim defective work, and that no prompt payment interest accrues during that time on the properly disputed portion. 03:30 Introduction to a special Texas rule that allows a sub to stop work if they are not paid but the owner has already paid the GC, even when the contract has a pay-when-paid clause. 04:00 Steps for using this remedy: submit your pay application, verify that the owner has paid the GC (sometimes via public information request), and then send a letter saying you know they've been paid and will stop work in ten days if you are not paid. 04:30 Airport remodel example where the client had not been paid for months, confirmed the GC had been paid through a public information request, and sent a 10-day notice demanding $50,000 or they would stop work. 05:00 Outcome of the story: the client was paid after the letter, showing how effective the prompt pay stop-work remedy can be when used correctly. 05:20 Closing notes that this remedy must be used carefully and usually with an attorney's help to avoid breaching the contract, and that Texas prompt payment protections apply to public, private, and commercial projects.

    6 min

  5. Jun 1

    TRUST YOUR GUT: Chapter Thirteen, Ignoring a Demand Letter Costed Him $100,000

    Disputes are inevitable; losing them is not.  In this chapter thirteen reading of Trust Your Gut, Karalynn shares Kelly's $100,000 nightmare judgment, walks through how disputes progress from complaints to lawsuits, and shows how communication, documentation, technology, and arbitration keep you protected. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter! Key Takeaways 1. Kelly ignored a demand letter, lawsuit, and judgment and ended up owing over $100,000 plus attorney's fees by default. 2. Once a judgment is final, owners can reach bank accounts, wages, property, and other assets until fully paid. 3. Most disputes can be resolved early if contractors address complaints quickly, document everything, and have clear contracts. 4. Right-to-cure laws, technology, and arbitration clauses give contractors powerful tools to manage disputes outside of court. Timestamped Overview 00:00 Episode intro, and welcome to the Trust Your Gut series. 00:10 Introduction to chapter 13 on disputes, framed as what happens when they arise and how to handle them. 01:00 Story setup: Kelly, a contractor with over a decade of experience and a $100,000 home remodel for the Martins, who complain about minor issues like drywall cracks and uneven paint that he brushes off. 02:00 Kelly receives an official-looking demand letter alleging defects, buries it under paperwork, and assumes the Martins will let it go, then 30 days later receives a lawsuit notice, which he also ignores. 03:00 Several months later, Kelly receives notice of a judgment for the Martins' full $100,000 claim plus attorney's fees, calls for help, and learns he missed multiple chances to respond and reopen the case. 04:00 Explanation that the Martins can now pursue bank accounts, wages, property, and personal belongings until they're paid in full, and Kelly agrees to a $2,500-per-month payment plan while regretting ignoring the first letter. 04:30 Narration zooms out to explain that, like death and taxes, disputes are inevitable for residential contractors, and you should approach every job assuming a dispute could happen so you'll build in protections. 05:30 Explanation that construction is unpredictable, clients may dislike how something looks, and the goal is to manage expectations rather than hand over total control, with a note that disputes can also start when clients don't pay up. 06:30 Emphasis that most disputes can be resolved before becoming nightmares, and problems arise when contractors avoid communication, ignore issues, and fail to make a plan of action. 07:00 Section "First, don't ignore complaints," stressing the need to address issues, document them, and use change orders when something is outside the original contract so you build a strong record. 08:00 Explanation that homeowners often let small annoyances pile up until they blow up, and that documenting every complaint, fix, and "all good" acknowledgment gives you a vital paper trail if old issues resurface. 09:00 Overview of how disputes typically progress: prevention stage with minor complaints, demand letter stage where many states give contractors a right to cure, and lawsuit stage if things escalate. 10:00 Strong warning that ignoring a demand letter is a huge mistake because in court it becomes exhibit A showing you as unresponsive, and explanation that even at the lawsuit stage you can sometimes still settle out of court. 11:00 Reminder that judges and juries often sympathize with homeowners, which is why documented paper trails, clear communication, and strong contracts are critical for protecting your business. 12:00 Tips for avoiding disputes, starting with having a clear contract that both you and the client understand, and using digital tools to organize emails, texts, photos, and change orders by project. 13:00 Advice to over communicate: respond promptly to problems, check in afterward to confirm satisfaction, and keep a complete documentation cycle for each issue, from problem to agreed solution to client acknowledgment. 14:00 Introduction to arbitration as a tool to keep disputes out of public court, with an explanation that arbitration is private, often faster, and handled by construction-savvy decision-makers. 15:30 Discussion of embracing technology: how modern construction management tools make it easy to store documents, track communications, manage schedules, and maintain records that are invaluable if disputes arise. 17:00 Explanation of specific tech benefits, including documentation, instant client communication, efficient project management, digital contracts and signatures, financial tracking, and on-the-spot change orders. 18:00 Summary of arbitration benefits—privacy, efficiency, and expertise—and encouragement to include arbitration clauses in contracts so disputes go to an expert instead of a general jury. 18:30 Final key takeaways: don't ignore complaints or demand letters, embrace technology for documentation and communication, and use arbitration to keep disputes out of court whenever possible. 19:10 Closing reflection on Kelly's story as a harsh reminder that ignoring disputes makes them worse, with encouragement to be proactive, over communicate, and prepare for the worst while planning for the best, and a tease of the next chapter.

    18 min

  6. May 25

    TRUST YOUR GUT: Chapter Twelve, Stop Warranty Work On Unpaid Jobs

    Warranties should protect your business, not bankrupt it. Karalynn breaks down express and implied warranties, how to limit what you're on the hook for, why no warranty starts before full payment, and how to separate maintenance issues from true defects. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter! Key Takeaways 1. A warranty is your legal obligation to fix defective work or materials for a defined period after completion. 2. Residential contractors have both express warranties (what you say or write) and implied warranties created by law. 3. You can limit warranties by stating only promises in the contract apply and no outside verbal promises are honored. 4. Implied warranties can often be disclaimed to the fullest extent allowed by law, depending on your state. 5. Your contract should state that the warranty does not begin until the job is complete and paid in full. 6. You should reserve the right to decide whether issues are handled by repair or replacement. 7. Your contract should define defects versus maintenance so you are not blamed for owner-caused problems. Timestamped Overview 00:10 Setup of the Trust Your Gut series and introduction to chapter 12 on warranties. 01:00 Story of Sean's $30,000 whole-house window job for Mr. Knight and the contract term requiring full balance minus 3 percent for punch list items. 02:00 Mr. Knight withholds the remaining $27,000 over minor issues, even after the manufacturer confirms they're easy to fix, and Sean removes window hardware because the contract says the windows still belong to him until full payment. 03:00 Mr. Knight finally pays the $27,000, Sean fixes minor issues, and the lesson is that a well-written warranty and contract can be your best friend when things get tough. 03:30 Warranty 101 basics, defining warranties in residential work and explaining express warranties with simple examples like promising a deck will last ten years. 04:30 Explanation of implied warranties such as habitability and a watertight roof, and the reminder that express and implied warranties exist whether you write them down or not. 05:30 How to limit warranties with contract language, including clauses that say only warranties written in the contract apply and no verbal promises outside the agreement are honored, plus discussion of disclaiming implied warranties where allowed. 06:30 The big rule: no warranty until full payment, with sample language tying a one-year warranty to full payment and an explanation of why this prevents clients from dragging out payment over minor issues. 07:30 Clarifying that the contractor decides whether an issue is repaired or replaced, protecting against unreasonable demands for full replacement when a repair will do. 08:00 Maintenance versus defects section, with examples like landscaping dying from lack of watering and contract language giving the contractor authority to decide if issues are defects or maintenance. 09:00 Extra tips segment: offering maintenance contracts for ongoing upkeep and making sure subcontractors give you written warranties that match what you promise your clients. 09:40 Key takeaways recap on specifying what is covered, delaying warranty obligations until full payment, and clearly separating defects from maintenance in your contracts to protect your business. 10:20 Closing reminder that warranties are powerful tools only if written correctly, plus the final point that Sean's "no payment, no warranty" clause saved him, and a tease that the next chapter will cover what to include to protect yourself when disputes happen.

    10 min

  7. May 18

    Stop Gambling with OSHA: Practical Safety for Small and Mid-Sized Contractors

    Safety pays. During this episode, Karalynn talks with Aggie Safety founder Sumit Anand to unpack what a real safety culture looks like for contractors of every size. From OSHA-required documentation to bilingual trainings and on-site audits, they explore how a practical safety program not only keeps your people alive and well but also protects your bottom line through better insurance rates, stronger reputations, and access to bigger jobs. Learn more about Aggie Safety: www.aggiesafety.com Safety Consultant webpage: Safety Consultants - Aggie Safety Safety Inspections webpage: Safety Inspection | Aggie Safety Your Trusted OSHA Partner Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter! Key Takeaways A functional safety program rests on three pillars: written documentation, ongoing employee training (often in English and Spanish), and regular inspections or audits to verify that rules are actually followed. Even very small subcontractors need basic written safety policies and enforcement; assuming they are exempt because they have fewer than ten employees leaves them dangerously exposed legally and financially. Strong safety performance directly affects workers' comp and insurance costs through experience modifier ratings (EMR), and a poor safety record can drive premiums up, hurt cash flow, and block access to larger, higher-value projects. OSHA has broad authority to inspect job sites based on complaints, observations, or incidents, and violations can result in substantial fines, business shutdowns, and long-lasting marks on a company's record if issues are ignored. Safety is ultimately a culture issue: leadership must model safe behavior, consistently coach and correct workers, reward positive actions, and address complacent employees whose habits put the entire company at risk. Timestamped Overview 01:06 Sumit shares his background in chemical engineering, process safety, and his move from corporate roles to founding Aggie Safety. 03:29 How Aggie Safety finds and serves clients, including acquiring Lone Star Loss Control and growing through referrals and marketing. 04:17 The three pillars of safety programs: documentation, training, and inspections or audits, and why each matters in court. 07:03 Common safety gaps among subcontractors, especially very small companies that lack written policies and enforcement. 13:18 How long injuries affect insurance records, typical three-to-five-year lookback periods, and the hidden savings from accidents that never happen. 14:10 How strong safety records help small and mid-sized firms qualify for major bids with large chemical and industrial companies. 19:40 How OSHA inspections are triggered, what inspectors look for on construction sites, and the importance of handling visits professionally. 20:43 Turning safety into culture through repeated training, reinforcement, and real-world stories that stick with workers. 23:09 Client success stories where audits, corrections, and ongoing inspections led to reduced fines, stronger safety culture, and long-term relationships. 25:54 Why outside safety experts can sometimes influence worker behavior more effectively than internal supervisors. 26:00 Where to find Aggie Safety online and how the company balances passion for safety with cost-conscious solutions for small businesses. 26:54 Karalynn explains how safety plans show up immediately in litigation and why "something is better than nothing" when injuries lead to lawsuits. 27:05 The dangers of complacency, the need for visible safety leadership, and ways to encourage and reward safe behaviors.

    30 min

  8. May 11

    TRUST YOUR GUT: Chapter Eleven, Get Paid When Clients Cancel

    Cancellations should not cost you everything. Karalynn explains why every residential contract needs a clear cancellation clause, how to tie it to deposits, milestones, and profit on unperformed work, and how this simple language saves you from expensive fights when homeowners walk away. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter! Key Takeaways 1. A cancellation clause defines what happens when a homeowner cancels after signing, giving them the right to cancel while guaranteeing you are compensated for time, effort, and lost profit. 2. The homeowner's three day right to cancel without penalty exists in most states, so your clause must operate after that grace period to protect your payment rights. 3. When a project is canceled before work begins, the contract should make the initial deposit non refundable to cover scheduling, preparation, and lost opportunities. 4. When a project is canceled after work has started, you should be paid for work performed plus a clearly stated percentage of the remaining contract to reflect the profit you would have earned. 5. Tiered cancellation language and specific percentage ranges tied to project stages reduce ambiguity, shorten disputes, and make it far easier to enforce your right to profit if a client backs out. Timestamped Overview 00:00 Show intro and welcome 00:17 Trust Your Gut "cheap Audible" setup 00:40 Introduction to the cancellation clause 01:05 Why contracts need this protection 01:30 Three day homeowner cancellation right explained 02:00 How a cancellation clause defines damages 02:37 Problems when profit is not clearly spelled out 03:05 Scenario where a homeowner cancels after signing 03:35 Role of non refundable deposits before work begins 04:05 Cancellations after work starts and what you are owed 04:40 Example using a one hundred thousand dollar contract 05:10 Using percentages of the remaining balance for profit 05:40 Tiered cancellation fees for long projects 06:10 How to choose appropriate profit percentages 06:40 Sample contract language for cancellation terms 07:10 Key takeaways on valuing your time and profit 07:27 Connection to standards and upcoming chapter 07:55 Legal disclaimer and firm contact information

    9 min
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Construction Legal Made Easy, hosted by licensed attorney Karalynn Cromeens, explores managing contractors, how to build a smarter business and avoid litigation. In this legal driven show, find the tools, detailed insight and confidence to side step common challenges and thrive in the construction industry.

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